Broken Arrow City Council
Meeting of: 11-01-2016
To: Mayor and City Council
From: Office of the City Attorney
Title:
title
Consideration, discussion, and possible preview of an ordinance amending Chapter 7, Business Regulations and Licenses, Article V. Pawnbrokers, Section 7-89. - Pawnbroker defined, specifically defining terms as used in this Chapter; Section 7-92. - Reserved; specifically adding eligibility requirements to obtain a pawnshop license; amending Section 7-95. - Required information; material, specifically requiring fingerprints of the applicant to be submitted with the license application; Reserving Section 7-103. - Records required; amending Sec. 7-105. - Reports to police, specifically requiring pawnbrokers to report to the police department, within two days, any buy transaction or pawn transaction.; amending Section 7-106. - Inspections, specifically allowing an officer who has probable cause to believe property is stolen or embezzled to place a written hold on such property; amending Section 7-112. - Penalties, specifically defining the punishment for violating Sections regulating Pawnbrokers; adding regulations for Precious Metals and Gems, Section 7-152. - Definitions; Section 7-153. - State license, specifically requiring precious metal and gem dealers to maintain a valid State license; Section 7-154. - Records to be maintained, specifically requiring dealers to keep a record of any transaction involving the purchasing of any used item made or containing precious metals or gems; Section 7-155. - Certain goods to be kept by Dealer: Time and Procedure, specifically allowing an officer who has probable cause to believe property is stolen or embezzled to place a written hold on such property and requiring dealers to keep such metals and gems on hold for a period of ten days; Section 7-157. - Penalty, specifically defining the punishment that may be imposed for violating Sections regulating Precious Metals and Gems; repealing all ordinances to the contrary and declaring an emergency
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Background:
The Legislature has recently amended State Laws regulating Pawn Brokers and Precious Metals and Gems Brokers. After reviewing these changes and current City Ordinances Staff is recommending the following changes to Chapter 7 of the Broken Arrow Code of Ordinances.
Section 7-89 should be amended to clarify definitions as used in Chapter 7, Article V, specifically defining the terms Pawn Broker, Pawn Transaction, Pledged Goods and Person. Additionally, pursuant to State Law, Section 7-92 should be amended to add eligibility requirements to obtain a pawnshop license and Section 7-95 should be amended to require fingerprints of the applicant to be submitted with the license application. Section 7-106, which regulates inspections by the police department, should be amended to adopt State Law requirements for inspections of pawnbroker transactions. Section 7-112 is being requested to amended to become in compliance with State Law regarding the penalties that can be imposed for violations of these sections.
Additionally, City Ordinances do not currently regulate Precious Metals and Gems Brokers. Staff is recommending that Section 152 through 157 be adopted to regulate these types of businesses and to be in compliance with State Law.
Furthermore, effective November 1, 2016. State Law will require all pawnbrokers to report within 2 days to the chief of police any buy transaction or pawn transaction. Currently, State Law and City Ordinance require such reporting within 3 days of any transaction. Many pawnbroker businesses are not reporting such transactions within the required period and thus, detectives are going to each pawnbroker business in order to get these transaction receipts. In order to streamline this process, the Police Department recently purchased a website reporting system in which pawnbrokers would be able to report to the chief of police within three days of any buy transaction or pawn transaction through an online system. The online system is available to every pawnbroker business at no charge. Section 7-105 is being requested to be amended to be in compliance with State Law and require pawnbrokers to report transactions within 2 days and require pawnbrokers to report transactions by reporting a physical copy of the transaction report directly to the police department or through the online database reporting system.
Cost: None
Prepared By: Beth Anne Wilkening, City Attorney
Reviewed By: Assistant City Manager - Administration
David Boggs - Police Chief
Approved By: Michael L. Spurgeon, City Manager
Attachments: Preview Ordinance
Recommendation:
Preview Ordinance and set for adoption at the next meeting.